Life Insurance Calculator

A common rule of thumb is 10-15 times your annual income. The DIME method (Debts + Income + Mortgage + Education) provides a more personalized estimate. This calculator uses the DIME framework to give you a tailored recommendation.

For most people, term life insurance is the better choice. It's 5-15x cheaper than whole life and covers the period when your family is most financially vulnerable (while kids are young, mortgage is large). Invest the premium difference in a low-cost index fund.

The best time is when someone depends on your income — typically when you get married, have children, or take on a mortgage. Premiums increase roughly 8-10% per year you delay. A healthy 30-year-old pays about half what a 40-year-old pays for the same coverage.

Employer-provided life insurance (usually 1-2x your salary) is a valuable benefit, but it typically ends when you leave the job. Use it as a baseline, but purchase an individual policy to ensure continuous coverage regardless of employment changes.

Match the term to your longest financial obligation. If your youngest child is 5 and you want coverage through college, that's a 20-year term. If your mortgage has 25 years left, consider a 25 or 30-year term. The goal is to have coverage until your dependents are financially independent.

Yes, but it may cost more. Conditions like diabetes, heart disease, or a history of cancer typically result in higher premiums. Some insurers specialize in high-risk applicants. The best approach is to apply to multiple companies — rates vary significantly between insurers for the same health profile.